$80 million verdict for 3 staff fired for taking ‘off the report’ time without work in California

Three former staff in a Northern California workplace of the Zurich American Insurance coverage Co. who had been fired after taking “off-the-record” paid time without work had been awarded greater than $80 million in damages by a Sacramento jury Thursday, Sacramento attorney Lawrance Bohm announced.

The case stemmed from a lawsuit initially filed in 2018 that went to trial after Zurich American declined settlement presents beginning at $150,000 for every of the three plaintiffs who labored on the insurer’s Gold River workplaces, Bohm stated in an interview.

“I’m jubilant,” Bohm stated. “It’s stunning for an American-based insurance coverage firm that gives protection to 90 % of the Fortune 500 to have made a zero-dollar supply… That is vindication.”

Zurich American spokeswoman Robyn Ziegler stated in an electronic mail response to The Sacramento Bee that the corporate doesn’t touch upon litigation, “So I’ve no remark to give you.”

Wednesday’s verdict included damages for financial hurt, reputational damages and $25 million in punitive damages for every of the workers — Melinda Brantley, Nicholas Lardie and Daniel Koos — who had been a part of Zurich American’s staff’ compensation division, Bohm spokesman Daniel Harary stated in asserting the $80,252,412 verdict particulars.

Bohm’s spokesman stated the three plaintiffs had been fired in December 2017 after they adopted a supervisor’s coverage of taking “off the report” time without work as an incentive for laborious work.

The times off had been referred to as “Omen days,” referring to then-Assistant Vice President Chris Omen, courtroom papers say.

“Omen supplied free paid time without work (‘PTO’) based mostly on efficiency,” courtroom papers say. “Staff in Omen’s division referred to the free paid time without work as ‘Omen Days.’

“Omen’s free paid time without work was used to reward workers who had been acting at a excessive stage or reached sure objectives. The free paid time without work rewards didn’t require any requests or entries within the official PTO system.

“If an worker used paid time without work authorized by Omen, the worker was instructed to not use any of Zurich’s official paid time without work. On most events. Omen instructed the worker to ‘take a time off or delete the time without work requests within the system and acknowledged that ‘it’s on me,’ indicating that the worker earned the free paid time without work.

“All the Rancho Cordova department was conscious of and benefited from this unofficial rewards program.”

The three had been fired days earlier than Christmas 2017 after a quick investigation by the corporate, Bohm stated.

Zurich American argued in courtroom filings that the workers had been fired after “time theft” that resulted within the three being paid a complete of greater than $100,000 over two years.

“Theft will not be justified just because your boss informed you to do it,” the corporate argued. “Plaintiffs are three former managers at Zurich insurance coverage firm who had been found to have below reported paid time without work (PTO) at work.

“They admitted to partaking on this exercise and defined it away by saying that their supervisor informed them to take action.”

Bohm stated Zurich American “maliciously defamed three superb individuals from our Sacramento neighborhood,” and that his shoppers didn’t need to be concerned in a lawsuit.

Bohm initially supplied to settle the case for $150,000 for every plaintiff however was rebuffed, he stated. In 2021, he tried once more, providing to accept $500,000 every however was turned down. Lastly, earlier than trial started in Sacramento Superior Court docket final month, he supplied to accept $2 million per plaintiff however was informed no, he stated.

“Zurich has had years to forestall this and do proper,” Bohm stated, including that firm supervisors spent 71 minutes investigating the allegations towards the workers earlier than firing them.

“For a corporation that prides itself on equity, that’s scary,” he stated. “Hundreds of us in California have claims being dealt with by Zurich.

“If that is the best way it treats its workers what does that imply about what we will anticipate from them once we want them?”